A Study on Human Resource Management Practices in Selected Financial Institutions in Malaysia

Abstract

Human resource management (HRM) practices are part of the system
and processes that are expected to be consistent with strategy. The logic
connecting HRM practices and organisational is intuitively appealing,
supported by theoretical arguments from a number of disciplines.
The future organisation demand is to recognise itself to become
effective in responding to changing environment needs. The organisation
must reorganise itself to match the changing needs of its employees.
Organisation also must develop a new approach to manage human
resources to be effective and better result oriented.This study extends empirical research on the organisation-level
impact of HRM practices. A unique national probability sample financial
institutions to evaluate the association between a variety of HRM practices
dimensions and perceptual measures of organisational performance,
organisational climate, and quality of work life. The HRM practices focused
on the twenty-five most commonly recognised area of HRM.
Some important methodological issues that merit better
understanding the relationship between HRM practices and organisational
performance was used. The organisation selected in this study were
financial institutions around Selangor and Kuala Lumpur. A structured
questionnaire was developed as an instrument in collecting data. The data
collected was analysed using Statistical Package for Social Science (SPSS).
Descriptive statistics such as frequencies, one way ANOVA, t-test,
correlation, and multiple regression was used to analyse and conclude the
relationship of HRM practices and organisational performance,
organisational climate, and quality of work life.
This study was to examine whether the dimensions of HRM practices
have relationship with organisational performance, organisational climate,
and quality of work life. This was examined by comparing three levels of
employees in industrial setting represented by financial institutions in
Malaysia. The results showed that subgroup analyses of employees indicated that there are no differences in the perception of HRM practices,
organisational performance, and quality of work life, but there is a difference
in the perception of organisational climate.
The HRM practices of the financial institutions are found to have
positively correlated to organisational performance and quality of work life,
but negatively correlated with organisational climate. In an analysis of
sector-wise comparison, it was found that no inter-group differences in their
perception of HRM practices, organisational performance, organisational
climate, and quality of work life between the sector. The study has shown
that identification of HRM practices promises to add significantly to
understanding the relationship between HRM practices on organisational
performance, organisational climate, and quality of work life.